Delhi District Court
Roc vs M/S Kisan Agro Bio Chemicals Limited on 4 January, 2019
1
IN THE COURT OF SH. PAWAN SINGH RAJAWAT:
ADDL CHIEF METROPOLITAN MAGISTRATE (Spl. Acts):
CENTRAL:TIS HAZARI COURTS, DELHI
ROC vs M/s Kisan Agro Bio Chemicals Limited
CC No.544035/16
JUDGMENT
(a)Name of complainant : Dr. Afsar Ali Assistant Registrar of Companies, 4th Floor, IFCI Tower, Nehru Place, New Delhi-110091.
(b)Name of the accused : 1. M/s Kisan Agro Bio Chemicals Limited, Flat No. 2, 2nd Floor, Ganesh Market, Near Punjab National Bank, Sector- 7, Rohini, Delhi- 85.
2. Mr. Mohammad Usman, S/o Abdul Rahman, Director, Village Sehaspur, Ali Nagar, PO/ PS- Didauli, Moradabad, 244222, U.P.,
3. Mr. Mohammad Rizwan, S/o Abdul Rehman, Director, Village Sehaspur, Ali Nagar, PO- Didouli, Jyotiba Phuley Nagar, 244222, U.P.
4. Mr. Tausif Ahmad, S/o Mohammad Yameen, Director, Nagar Panchayat Joya, Moh.
Munshiyan, Amroha, Joya, 244222, U.P.
5. Mr. Rishiraj Gupta, S/o Sher Singh, Director, House No. 1299/9, Near Dobhi ROC vs. M/s Kisan Agro Bio Chemicals Ltd. & Ors. CC No.544035/16 1 of 7 2 Darwaja, Babra Mohalla, Rohtak, 124001, Haryana
(c)Offences complained of :
U/s 92, 99 and 137(3) for contravention of Section 92, 96 and 137 of the Companies Act, 2013.
(d)Plea of the accused : Pleaded not guilty (e)Final order : Convicted (f)Date of such order : 04.01.2019 Date of institution : 19.12.2016 Arguments heard/order reserved : 04.01.2019 Date of Judgment : 04.01.2019
Brief statement of the reasons for the decision:-
1. The complainant Dr. Afsar Ali, the Assistant Registrar of Companies, NCT of Delhi & Haryana filed the present complaint against the accused person as well as company for the offences u/s 92, 99 and 137(3) of the Companies Act, 2013 (in short 'Act') for non-filing of the balance sheet and profit and loss account within 30 days of Annual General Meeting and failure to conduct AGM as prima facie it appears that the company could not hold AGM for the financial year ending on 31.03.2015.
2. The facts of the case are that accused no. 1 is a ROC vs. M/s Kisan Agro Bio Chemicals Ltd. & Ors. CC No.544035/16 2 of 7 3 registered company registered with the office of the Registrar of Companies (for short "ROC") and accused no. 2 to 5 being the Directors/Officers of the accused no. 1 company, are responsible for the compliance of the provisions of the Act. It is stated in the complaint that Directors were required to place Balance Sheet and profit and loss account in the Annual General Meeting and also conduct AGM, in the prescribed form within 30 days of the date of the Annual General Meeting. The accused no.
1/company has not filed the balance sheet and profit & loss account and annual return and also could not hold Annual General Meeting for the financial year ended 31.03.2015. Hence, the present complaint.
3. Upon service of summons, accused have appeared. Copy of complaint and of documents were supplied to them. Notice has been framed against the accused persons for the offences punishable under section 92, 99 and 137(3) of the Act on 04.01.2019. They pleaded not guilty and claimed trial. Thereafter, complainant examined one witness.
4. Complainant has examined one witness i.e. CW-1. In his evidence, CW1 Ms. Shefali Guupta reiterated the facts of the case and deposed the same facts as alleged in the complaint. In support of the oral testimony, she has placed reliance upon documents i.e. copy of company master data as Ex. CW-1/1, register of Directors maintained with MCA Portal as Ex. CW-1/2, show cause notice is Ex CW 1/3, ROC vs. M/s Kisan Agro Bio Chemicals Ltd. & Ors. CC No.544035/16 3 of 7 4 certificate U/s 65-B of Indian Evidence Act as Ex. CW-1/4 and complaint Ex CW 1/5. CW1 has specifically deposed that the accused no. 1/company has not filed balance sheet and profit & loss account and annual return and has failed to conduct Annual General Meeting for the financial year ending 31.03.2015 despite issuance of showcause notice which is Ex. CW-1/3 and thus accused no. 1 to 5 are guilty of the contravention of Section 92, 96, 137 of the Act punishable U/s 92(5), 99 and 137(3) of the said Act. She also placed reliance upon his complaint as Ex. CW-1/5. During cross examination, the witness denied that accused persons were not responsible for the compliances of Companies Act, 2013 and the present complaint has been filed without verifying the facts and application of mind. Thereafter, CE was closed.
5. The statement of all accused U/s 313 Cr.P.C. was recorded, separately, to which they did not plead guilty and claimed trial.
6. I have given my thoughtful consideration to the submissions advanced on behalf of both the parties and gone through the relevant records. I have also considered the relevant provisions of law.
7. The relevant provisions of section 92/99/137(3) of the Act are reproduced for ready reference:-
Section 92:If a company fails to file its annual return ROC vs. M/s Kisan Agro Bio Chemicals Ltd. & Ors. CC No.544035/16 4 of 7 5 under sub-section (4), before the expiry of the period specified under section 403 with additional fees, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakhs rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.
Section 99: " if any default is made in holding a meeting of the company in accordance with section 96 or section 97 or section 98 or in complying with any directions of the Tribunal, the company and every officer of the company who is in default shall be punishable with fine which may extend to one lakh rupees and in the case of a continuing default, with a further fine which may extend to five thousand rupees for every day during which such default continues." Section 137(3):" If a company fails t file the copy of the financial statements under sub section (1) or sub- section (2), as the case may be, before the expiry of the period specified in section 403, the company shall be punishable with fine of one thousand rupees for every day during which the failure continues but which shall not be more than ten lakh rupees, and the managing director and the Chief Financial Officer of the company, if any, and, in the absence of managing director and the Chief Financial Officer, any other director who is charged by the Board with the responsibility of complying with the provisions of this ROC vs. M/s Kisan Agro Bio Chemicals Ltd. & Ors. CC No.544035/16 5 of 7 6 section, and, in the absence of any such director, all the directors of the company, shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees, or with both."
8. It is an admitted position of facts that there has been no statutory compliances on behalf of the accused persons in respect non filing of the Balance Sheet and Profit and loss account and conducting of AGM for the financial years as at 31.03.2015.
9. In the entire cross examination of CW1, there is no denial of any documents placed by the complainant. The complainant has placed on record certificate U/s 65-B of Indian Evidence Act to prove that the documents sent electronically to the accused company i.e. showcause notice was duly proved against the accused. Therefore, the arguments of Ld. counsel that there is a failure on the part of the complainant in complying with the requirement of electronic evidence is hereby rejected. Apart from arguing that no business was transacted in the accused company, no plausible reasoning is given. Thus, it is held that accused have failed to comply with the provisions of the Act as mentioned in the complaint.
10. In view of the aforesaid facts and circumstances, it is held that the complainant has proved its case beyond reasonable doubts against the accused persons.
ROC vs. M/s Kisan Agro Bio Chemicals Ltd. & Ors. CC No.544035/16 6 of 7 7 Accordingly, accused no. 1/company i.e. M/s Kisan Agro Bio Chemicals Limited and its directors Mohammad Usman, Mohammad Rizwan, Tausif Ahmad and Rishiraj Gupta are held guilty and convicted for offences punishable under section 92, 99 and 137(3) of the Companies Act, 2013.
11. Copy of the judgment be given to the convict free of costs.
Digitally signed byAnnounced in open Court on PAWAN SINGH PAWAN SINGH RAJAWAT 04th January, 2019 RAJAWAT Date: 2019.01.07 16:17:33 +0530 (PAWAN SINGH RAJAWAT) ACMM(Special Acts) CENTRAL TIS HAZARI COURTS DELHI ROC vs. M/s Kisan Agro Bio Chemicals Ltd. & Ors. CC No.544035/16 7 of 7